1999 IMRF Comprehensive Annual Financial Report

14. To be innovative, responsive, and considerate of the position of public trust it holds in the State of Illinois.Investment return shall include both income and realized and unrealized gains and losses, and is computed onmarket value.B. Proxy Voting GuidelinesInvestments SectionThe Board shall retain the final authority and responsibility to vote proxies. Generally, proxies shall be votedfor management nominees and proposals in all cases unless otherwise recommended by the InvestmentManager. In cases of takeover, anti-takeover, merger or acquisition resolutions or significant corporatedevelopments, the IMRF staff will consult with the Investment Manager(s) prior to execution of the proxyballot.C. U.S. Equity Investment Guidelines1. The equity portfolio as a whole shall be constructed on four fundamental principles: diversification, quality,growth, and value.2. A commitment to any one industry shall generally be limited to a maximum of 20 percent of an equitymanager’s portfolio market value at the time of purchase. Any holding of any one issuer, at the time ofpurchase, shall generally be limited to a maximum of 8 percent of the equity manager’s portfolio marketvalue.3. Equity securities must be listed on the principal U.S. exchanges or traded over the counter. ADRs (eitherlisted or traded over the counter) of foreign companies are permissible.4. Volatility of the non-commingled equity portfolio should not exceed 125 percent of the volatility of themarket as defined by Standard & Poor’s 500 Composite Stock Index and measured by the portfolioevaluation advisors unless otherwise agreed to by the Board.5. The use of convertible debt instruments shall be considered part of the equity portfolio.D. International Equity Investment Guidelines1. The international equity portfolio as a whole shall be constructed on four fundamental principles:diversification, quality, growth, and value.2. Managers may invest in equity securities that are not traded on U.S. exchanges. Global equity managersmay invest in equity securities that are traded on U.S. or international exchanges.3. Holdings of any one issuer, at the time of purchase, shall generally be limited to a maximum of 5 percent ofthe international equity manager’s portfolio market value.4. Global equity portfolio holdings are considered to be part of the international equity portfolio. Holdings ofany one issuer, at the time of purchase, shall generally be limited to a maximum of 8 percent of theportfolio market value. Additionally, country holdings (excluding Japan and the U.S.) and emerging marketholdings will generally be limited to 20 percent of portfolio market value at the time of purchase.Illinois Municipal Retirement Fund 41